Market evolution: Textile knitting and tufting machines (CN 8447) — 2015–2025

Introduction

This report analyses the evolution of EU external trade in goods covered by Combined Nomenclature heading 8447 — encompassing knitting machines (circular and flat), stitch-bonding machines, and machines for making gimped yarn, tulle, lace, embroidery, trimmings, braid, net, and tufting. The product scope covers four sub-headings: circular knitting machines with small cylinder diameter (844711), large-diameter circular knitting machines (844712), flat knitting and stitch-bonding machines (844720), and machines for lace, embroidery, tufting and related uses (844790). The EU has historically been a major net exporter and producer of these capital goods, with Italy and Germany at the core. Over the 2015–2025 decade, however, the market has undergone a pronounced structural transformation marked by falling trade volumes, a dramatic contraction of EU production, a geographic reorientation of export flows, and a shift toward higher-value product segments.

1. Volume Contraction and the Move Upmarket

1.1 The EU trade surplus is eroding despite persistent net-exporter status

Throughout the 2015–2025 period, the EU maintained a positive trade balance in CN 8447. However, the surplus narrowed significantly, from €244.2 million in 2015 to €165.6 million in 2025 (−32.2%). The peak surplus reached €340.7 million during the period. Import values remained broadly stable (€103.2 million → €100.8 million, −2.3%), while export values contracted from €347.5 million to €266.5 million (−23.3%).

1.2 Export volumes have halved while unit values have surged

The most striking dynamic is the divergence between volume and value on the export side. EU export quantities in tonnes nearly halved over the decade (−50.8%), yet the value decline was far more modest (−23.3%). This is explained by a sharp rise in average export unit values: the export price per tonne climbed from €17,375 in 2015 to €27,088 in 2025 (+55.9%). By contrast, import prices per tonne were essentially flat (€10,549 → €10,466, −0.8%). This pattern indicates that the EU is exporting fewer but more expensive — i.e., more specialised and higher-end — machines, while importing standardised equipment at stable prices.

1.3 Flat knitting machines emerged as a high-growth export segment

Examining the product segment breakdown reveals divergent trajectories among sub-headings. Flat knitting and stitch-bonding machines (844720) saw a dramatic export surge: value jumped from €14.4 million in 2015 to €56.5 million in 2025, with a spectacular spike to €126.2 million in 2022. Meanwhile, traditional circular knitting machine exports (844711 and 844712 combined) contracted substantially — small-diameter circular machines (844711) fell from €134.9 million to €57.3 million (−57.5%), and large-diameter circular machines (844712) declined from €145.0 million to €92.8 million (−36.0%). The lace, embroidery and tufting segment (844790) was the most resilient, growing from €53.2 million to €59.9 million (+12.5%).

This shift reflects the growing global demand for flat knitting technology — driven by sportswear, technical textiles, and seamless garment production — where European manufacturers (notably in Italy and Germany) maintain technological leadership.

2. Geographic Reorientation of Trade Flows

2.1 Traditional Near-East and Asian markets have weakened as export destinations

The partner-level data shows a marked reorientation of EU export destinations. Turkey, historically the single largest buyer of EU knitting machines, saw its imports from the EU fall from €67.6 million to €31.9 million (−52.8%). China similarly declined from €42.1 million to €18.4 million (−56.2%), reflecting the maturation of Chinese domestic machine-building capacity. These two markets alone account for a combined loss of approximately €60 million in EU export value over the decade.

2.2 Emerging textile economies have absorbed growing shares of EU exports

Partially offsetting the losses in Turkey and China, several developing and middle-income textile-producing countries increased their purchases of EU machinery:

Pakistan and Egypt stand out as the fastest-growing destinations, with export values roughly doubling over the period. This is consistent with the ongoing relocation of basic textile and garment manufacturing to South Asia and North Africa, which creates demand for new machinery. The United States, a high-income market, also grew steadily — likely reflecting reshoring trends and investment in advanced knitting technologies for technical textiles.

2.3 The United Kingdom's role as an import source collapsed after Brexit

On the import side, the most dramatic shift involves the United Kingdom. EU imports of CN 8447 goods from the UK plummeted from €6.8 million in 2015 to just €0.8 million in 2025 (−88.0%). This collapse is almost certainly linked to Brexit and the introduction of customs formalities from January 2021, which disrupted supply chains and may have redirected sourcing. Japan remained the EU's top supplier throughout the period (€40.6 million → €42.6 million, +4.7%), underscoring the continued importance of Japanese technology in high-end knitting machinery. China's share of EU imports grew from €17.8 million to €25.4 million (+42.9%), consolidating its position as the second-largest supplier. Switzerland (−44.4%) and the United States (−64.0%) also saw significant declines as import sources.

2.4 Import concentration has increased while export markets have diversified

The Herfindahl-Hirschman Index (HHI) for EU imports by partner rose from 2,141 in 2015 to 2,607 in 2025 (+21.7%), indicating increasing concentration of import sourcing — largely driven by the growing dominance of Japan and China and the retreat of smaller suppliers like the UK and Switzerland. Conversely, the export-side HHI fell from 733 to 642 (−12.5%), reflecting a modest diversification of EU export destinations away from the heavy reliance on Turkey.

3. Structural Contraction of EU Production

3.1 EU production of textile machinery has collapsed

The most consequential structural development is the dramatic contraction of EU domestic production in CN 8447 products. PRODCOM data shows output falling from 30,250 units (€1,184 million) in 2015 to just 8,340 units (€308 million) in 2025 — a decline of 72.4% in quantity and 74.0% in value. This is a structural collapse, not a cyclical downturn. It reflects the cumulative impact of offshoring of manufacturing capacity, intensified competition from Asian producers (especially China, Taiwan, and South Korea), and consolidation within the European textile machinery industry.

3.2 Italy and Germany remain the core of EU exports, but with diverging trajectories

The EU reporter breakdown confirms that Italy and Germany dominate EU exports, together accounting for roughly 85% of the total. However, their trajectories diverged sharply:

Italy — the traditional leader — saw its exports nearly halve, consistent with the decline in circular knitting machine exports (a segment where Italian firms like Lonati and Santoni have been dominant). Germany, by contrast, managed to grow its exports, likely benefiting from its strength in high-end flat knitting machines (Stoll, now part of the Karl Mayer group) and technical textile machinery. The specialisation data confirms both countries maintain strong revealed comparative advantage (RCA of 3.07 for Italy and 1.79 for Germany in 2025), but Italy's RSCA of 0.51 indicates a higher degree of specialisation.

3.3 The EU remains a net exporter but its self-sufficiency is declining

The net import reliance indicator remained negative throughout the period (confirming net-exporter status), but moved from −260% in 2015 to −69% in 2025 (+73.6%). This means the EU's export surplus relative to its domestic consumption has shrunk considerably. Similarly, trade intensity declined from 89.5% to 80.2%, and export propensity fell from 87.9% to 73.7%. These trends are consistent with the production collapse: as EU factories produce fewer machines, there is less to export and the economy becomes more reliant on imported equipment to meet domestic textile industry needs.

Conclusion

Over the 2015–2025 decade, the EU's position in global trade of textile knitting and tufting machines has undergone a profound transformation. The EU remains a significant net exporter, but the scale of its trade surplus has contracted by a third, underpinned by a halving of export volumes and a 74% collapse in domestic production value. The saving dynamic has been a decisive move upmarket: export unit values rose 56%, and the product mix shifted from declining circular knitting machines toward growing flat knitting and embroidery/tufting segments. Geographically, the traditional reliance on Turkey and China as primary export markets has given way to growing ties with India, Pakistan, Egypt, and the United States, while on the import side the post-Brexit disappearance of UK suppliers and the growing weight of China are the most notable developments. Italy's dominance in exports has eroded considerably, while Germany has consolidated its position. Looking ahead, the structural decline in EU production capacity raises strategic questions about the long-term competitiveness and resilience of the European textile machinery sector, even as its remaining output commands premium prices in global markets.